Exam 3: Working With Financial Statements

Chadwick, Inc., has 125,000 shares of stock outstanding, sales of $7.2 million, net income of $600,000, a price-earnings ratio of 22, and a book value per share of $36.30. What is the market-to-book ratio?

CCI Group Inc. (Toronto) has a current ratio of 1.1. This implies that if the firm liquidates its current assets in order to pay off its current liabilities, it can sell the current assets for as little as:

Gateway Lodging has annual sales of $1.22 million, total debt of $380,000, total equity of $750,000, and a profit margin of 7.45 %. What is the return on assets?

The cash ratio is measured as:

Without making reference to its formula, provide a definition of average collection period.

Calculate gross profit margin given the following information: sales = $1,200; cost of goods sold = $450; general and administrative costs = $150.

Monika's Gift Barn has cash of $316, accounts receivable of $687, accounts payable of $709, and inventory of $2,108. What is the value of the quick ratio?

What is the times interest earned ratio for 2018?

When a firm wishes to increase its net working capital turnover rate, it should _____, all else constant.

The financial manager of ABC, Inc. would like to somehow do a comparison of financial statements to determine how ABC, Inc. is performing both historically and competitively. Develop and explain a plan for performing these comparisons.

If Young stock sells for $40 and there are 100 million shares outstanding, what is the P/E ratio($ in millions)?

Which of the following regarding financial statement analysis is NOT correct?

When comparing the financial statements of one firm with those of another firm, a problem that may be encountered is that the two firms may be seasonal in nature and have different fiscal year ends.

The following statement of financial position and statement of comprehensive income should be used. Woodburn, Inc. has a profit margin of _____ %, a total asset turnover of _____, an equity multiplier of _____, and a return on equity of _____ %. (Use 2018 values.)

Which one of the following is a measure of liquidity?

Last year a Vancouver firm had a profit margin of 7%. This year the profit margin is 6%. Sales remained constant. Which one of the following statements is correct based on this information?

Conceptually, what does the days' sales in receivables ratio measure for a firm?

Bentley and Moore has net working capital of $6,900, net fixed assets of $86,100, sales of $156,000, and current liabilities of $41,700. How many dollars' worth of sales are generated from every $1 in total assets?

The financial ratio measured as total assets minus total equity, divided by total assets, is the:

A Waterloo firm with net income of $500,000 pays 48% of net income out in dividends. If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock?